What: Mining services provider Maca Ltd (ASX: MLD) was always expected to buck the trend of its peers and report an increase in profits for the 2014 financial year.
It hasn't disappointed with the firm yesterday announcing a 25% increase in revenue to $595.4 million and a 12% increase in net profit after tax to $55.4 million. On a per share basis, earnings amounted to 30.3 cents and for the full year fully franked ordinary dividends of 14 cents per share have been paid and declared.
So what: Achieving an increased profit when faced with such difficult industry headwinds is a commendable effort by Maca's management and is a key reason Maca has been one of the top picks of some fund managers recently.
Now what: Despite profits coming in above the expectations of many analysts, the share price hardly budged after the results release. Based on the FY 2014 numbers, the stock is currently trading on a price-to-earnings ratio and dividend yield of 7.1x and 6.5% respectively. The company also boasts a net cash position of $6.8 million which adds to the positive attributes of this stock. In short Maca ticks a number of boxes for a value investor and could be one for the watchlist.
